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EUR/USD Daily Forecast – Another Attempt To Settle Above 1.1910

By:
Vladimir Zernov
Published: Nov 27, 2020, 07:49 UTC

EUR/USD managed to stay above the key resistance level at 1.1910 and tries to move higher.

EUR/USD Daily Forecast – Another Attempt To Settle Above 1.1910

In this article:

EUR/USD Video 27.11.20.

Euro Gains Ground Ahead Of The Weekend

EUR/USD continues its attempts to settle above the key resistance level at 1.1910 while the U.S. dollar remains under pressure against a broad basket of currencies.

The U.S. Dollar Index settled below the 92 level and is trying to get to the test of the yearly lows at 91.75. A move below the support at 91.75 will likely attract additional speculative activity from foreign exchange market traders, and the U.S. dollar will find itself under serious pressure which will be bullish for EUR/USD.

Today, EU will provide various sentiment data for November. Euro Area Consumer Confidence is projected to decline from -15.5 in October to -17.6 in November due to lockdowns. Industrial Sentiment is expected to decrease from -9.6 to -10.5 while Services Sentiment is projected to fall from -11.8 to -15.5.

At this point, the challenging economic situation in the Euro Area does not hurt the euro as traders are focused on the potential U.S. stimulus package which may be delivered soon after Biden gets into the office.

However, the European Central Bank may become worried about the rise of the euro at some point as stronger euro puts additional pressure on the European economy and on prices in the Euro Area.

Technical Analysis

eur usd november 27 2020

EUR/USD is currently trying to settle above the major resistance level at 1.1910. Yesterday, EUR/USD made an attempt to move above this key level but failed to gain sufficient momentum in thin holiday trading. The market is not set to be very active today as many traders are still absent from their desks and will return on Monday.

The next resistance for EUR/USD is located at 1.1965, but EUR/USD may also face some resistance at the highs of the previous trading session at 1.1940. If EUR/USD manages to settle above the resistance at 1.1965, it will gain upside momentum and head towards the next resistance level at 1.2000.

On the support side, EUR/USD needs to settle below the support level at 1.1800 to have a chance to develop downside momentum. In case EUR/USD gets below this level, it will head towards the next support at the 20 EMA at 1.1855.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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